Business Ethics

International Business Studies

2022 - 2023

Lecture 1:
- Introduction
- Basic Moral Theory
Lecturer:
Connie Aarsbergen, PhD
c.aarsbergen@windesheim.nl

Brightspace
IBmIBS2 Business Ethics & Geopolitics
  

What is the assignment?

First term: filling out Form Business Ethics
• Choosing an international organization
• Choosing one SDG
• Incorporating this SDG in the strategy
using kpi’s.
• Listing potential difficulties that arise within /
outside the organization

Dilem
Second term: writing an advisory report ma
• The implementation of the SDG leads to a (moral)
dilemma
• Stakeholders analysis: one or more stakeholders are
negatively affected.
• Various moral principles that are in conflict
• Advice the board of directors what to do?
• Giving arguments (utilitarian & deontological)
  

Visit the website

www.sdgcompass.org

Literature needed: (all downloadable from Brightspace)

• E-book: SDG Compass. The Guide for Business Actions on the SDG
• E-book: Business Reporting on the SDGs.
• Article: SDG’s and the (Moral) Dilemmas in International Business
• Article: Basic Moral Theory from a Pluralist Perspective
 For m
ore in
Choice of the company and SDG Part 2 forma
o f thi tion
s lect
ure
• Suggestion: the company of your project?
See to it that you can find information on their websites.
• CSR: Corporate social responsibility
Triple P: People, Planet, Profit
• Choice of the SDG goal is fictitious, but try to be realistic
Choose one where the company can really make a difference.
• Assume that the board of directors is genuine (no window dressing)
Problems that are later met during the implementation, are not their fault.

For a description of
each goal, see first
chapter SDG Compass.
Also on Sdgs.un.org
Before we start….
Basic moral theory
To have a common language

Morality:
set of values and norms that guides
the conduct of a group.

Ethics:
academic discipline that studies the
nature of morality

In practice:
terms are interchangeably used.
Moral Value:
Abstract term that refers to the ideals for a personal
or social life.
•Examples: Honesty, reliability, safety, equality,
freedom

Moral principle:
An (abstract) guideline in which a value is mentioned
•Example: men and women should be treated equally

A norm:
A (un)written rule that is meant to realize a value in a
concrete situation.
•Example: in a job interview, no distinction should be
made between man and women
Is this a value – a principle - or a norm?

• Homosexual people should not be discriminated.

• In our company it is forbidden to take office

supplies at home for private use.

To which values refer these norms?

• On the building site, every worker should wear a helmet.

• On a warm day, in our school male and female students should not
wear shorts and slippers.
Application of distinction between values and
norms: in codes of conduct

Use norms instead of principles / values

Warning: be specific – apply to the situation –
avoid misinterpretations.
Virtues and vices
 Virtues:

Characteristic behavior of a person

that is preferred in a group
Examples: loyalty, punctuality, honesty, reliability

Vice
Characteristic behavior of a person that is considered to
be bad in a group.
Examples: greediness, jealousy, untidiness

All virtues are values, but not all

values are not virtues.
Give an example of a value that is
not a virtue.
Diversity in virtues
 
Virtues and vices
 
Problems with virtue ethics:
• Diversity: you do’nt want the virtues of other
religions imposed on you.

• Can be abused to make people obedient to follow your orders.

Dilemma:
A difficult choice between two or more options
Behind the options are values you want to realize.

Both options are (in principle) good

-Nothing wrong with the options
-Nothing wrong with the moral behavior
-You want to have all values

Example
A company wants to grow / expand.
A company wants to reduce CO2-reduction

Moral dilemma:
When the consequences of your
choice have a negative impact on
others.
Results are not just / not good
A lady manager is offered a top position in international business.
Working hours: 60 hours per week, lots of traveling.
She also wants a baby and start a family.

Which values behind:

• Option 1: Top career?
• Option 2: A baby?

Possible choices:
• Either / or choice
• A compromise

Whatever you choose in a dilemma,

there is always a price to be paid.
A devil’s dilemma:
whatever option you choose,
the consequences are bad.

Moral problem:
When persons do not
comply with the norms.
(non-compliant
behaviour)

Example:
Due to the energy crisis, you cannot pay the salaries
anymore.
• Option 1: reorganization, firing part of your loyal staf.
• Option 2: going bankrupt
• Option 3?
Different values, moral principles and norms in the world

Reason: variety of secular and religious world views:

• Religious: Christianity, Islam, Hinduism, Buddhism……
• Secular: Humanism, Socialism, Liberalism, Fascism, ….

Difference in what is considered to be good or bad

Cultural: customs and habits

Moral: values and norms

There is culture diversity

and moral diversity
PART 2
Choosing a sustainable development goal

Listing potential difficulties with stakeholders.

Examples of what companies can do?

• Paying decent wages to the workers

(fair trade programmes)
• Joining sustainable agriculture
programmes

Possible negative effects:

• Clients: price of the product becomes higher.
• Clients: quality of the product may be different / lower?
• Shareholders: less profit
 See also:

Examples of what companies can do?

• Opening company hospitals
• Doing research to limit negative health effects work
• Helping doctors with vaccination schemes
• Free medical treatment / medicines for employees
Negative effects:
• Non-employees: health care is not open for them
• Employees: company hospital hides effects working in a
poisonous working environment.
• Employees: having a paternalistic boss

• Opening company schools

• Helping schools with the quality of their curriculum
• Helping local schools with apprenticeships and jobs.
Negative effects
• Non-employees: education open for non employees?
• (Children of) employees: onesided education (only
suitable for the job)
Examples of what companies can do?

• Appointing female / gay staff in top positions

• Equal payment

Negative effects:
• Male staff: positive discrimination
• Local employees: not respecting their culture where man and
women live separately.
• Management: resistance in the work place against the gay/female
colleages / manager.

• Hiring / appointing members of minority groups

• Doing business with members of minority groups

Negative effects:
• Member of minority group: not feeling welcome /
secret discrimination by colleages
• Clients majority group: not wanting to do business
• Management: resistance in the work place against
members of the minory group.
 What can companies do?

• Improving water quality by reducing pollution

• Increase water use efficiency
• Help to construct sewer systems for better sanitation
and hygiene.

Dilemma:
• More expensive production methods /
higher prices
• Giving away water management
knowledge to commercial partners
(loosing future revenue model)

• Stop using fossil energy

• Reducing CO2
• Increasing the use of solar / wind /
hydrogen energy

Dilemmas:
• Fossil energy is still cheaper (higher prices)
• New technology is not yet mature, safety risks
• Local resistance against wind farms
 What can companies do?

Negative effects:

• Customers: higher prices

• Management: less easy to fire unsuitable
What can organizations do? workers.
• Fair income • Management: need to allow trade unions
• Secure form of employment
in the organization who can be ‘difficult’
• Safe working conditions
• Equal opportunities
• Social protection for the workers
and families (health insurance)
• Freedom to express concerns and
to organise
• Prospects for personal
development